Gold falls on weak global cues, muted demand

Gold prices fell by Rs 220 to Rs 31,650 per 10 gram amid weakening global trend and easing demand from local jewellers at the bullion market Tuesday. Silver, too, remained weak and declined by Rs 50 per kg to Rs 39,250 per kg due to reduced offtake by industrial units and coin makers. Marketmen said, sentiment remained downbeat in sync with a weak trend overseas as dollar firmed which eroded demand for the precious metal as a safe-haven. Globally, gold fell by 1.39 per cent to USD 1,187 an ounce in New York Monday. Silver, too, shed 2.39 per cent to USD 14.38 an ounce. Besides, slackened demand from the local jewellers and retailers at the domestic spot markets fuelled the downtrend.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity lost Rs 220 each to Rs 31,650 and Rs 31,500 per 10 gram, respectively. The precious metal had fallen by Rs 30 yesterday. Sovereign gold, however, remained steady at Rs 24,600 per piece of 8 gram in restricted activity. In line with overall trend, silver also traded lower by Rs 50 to Rs 39,250 per kg and weekly-based delivery by Rs 120 to Rs 38,735 per kg. On the other hand, silver coins continued to be traded at previous levels of Rs 73,000 for buying and Rs 74,000 for selling of 100 pieces.